What Cryptocurrencies Traders Should Know : Fundamental Analysis
While there are many different methods for evaluating the price of Cryptocurrencies , fundamental analysis may be the most integral for figuring out its true value.
Navigating the world of cryptos can be very daunting due to vast usage of computing jargon and technical concepts that will almost certainly confuse you. Add to that the relative infancy of the technology, it can be hard finding structured resources to assist you in your journey.
Step 1: Finding The Right Sources of Information
Knowledge is power. In order to assess a coin, we have to first know where to get the key sources of information from. Here is where you should get the information from
Coin’s White Paper :
A detailed proposal by the development team which outlines the purpose and mechanics of the coin. This represents the main source of evaluating the fundamentals of the coin. You should always read the coin’s white paper before investing. The drawback is that it can get very technical given the use of technical jargon and concepts that are hard for an average Joe to comprehend.Coin’s Slack Channel or Blog
This represents the official and main channel of communication of the core development team. Join their slack channel and view the interaction of the development team with the community. Ask questions to get more information on the coin. You should also follow the updates given by the developers in their official blog.Community Forums:
Forums are a great way to understand the coins better, as well as the sentiments surrounding the coin. You can find simple definitions of certain concepts or easy-to-understand analysis of coins from forums, as the community is well-informed. The diversity of thoughts allows you to grasp the mechanics of the coin far better, especially if you’re not technically-inclined.
Step 2: Cryptocurrency Fundamental Analysis Checklist
The next step entails systematically asking questions on the Coin to assess whether it is a good investment.
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